The Bank of Mum and Dad has become one of the most popular lenders on the high
street during the fragile economic recovery.

But now there’s a new player in town who is set to rival its generousity.

The Bank of Gran and Grandad helped out family with an average payout of £23,328, according to the latest figures by equity release group Key Retirement Solutions.

The survey of more than 1,200 retired home owners found that 23 per cent raised money from their properties to help family during the past year.

The money was used to help children clear their debts as well as to buy houses and cars.

Widowers are the most generous to families handing out average cash gifts of £30,100, while married couples paid out an average of £20,258.

Sons are more likely to be given handouts than daughters, receiving £21,131, compared to £18,625 for daughters.

Dean Mirfin, group director at Key Retirement Solutions, said: “The Bank of Gran and Grandad is definitely open for business even if the traditional High Street banks are tightening up - and crucially the money is a gift.

“Helping out family is a powerful motivation for retired homeowners and the sums being handed out are major amounts with a total of nearly £150 million given away last year.

“Retired homeowners have around £770 billion of wealth tied up in their houses and many clearly feel financially comfortable enough themselves to be able to help others. It is crucial that families are involved when people take a decision to release equity from their home and if they are receiving the money all the better.”